Gold and Silver lower – By Todd Horwitz, Bubba Trading

 

The metals action is in an interesting position, Gold has rallied while Silver continues to sell off. Thursday saw gold rise to the top of the range and is selling off a little this morning. Silver is trending lower and is slightly lower this morning but close enough to unchanged that it could be on either side by the time you read this

As we look at the metal’s markets for now, they are like the tale of two cities, Gold rising and Silver falling. The pressure on Silver is interesting based on what gold has been doing. The ratio between Gold and Silver continues to widen, which in the long run should be bullish for silver.

For now, we are long Gold, short silver and waiting to see how March silver reacts at 17.50. Gold is in a trading range between 1545 and 1575. The metals are looking to breakout in one direction or the other, we look for Gold to go higher which could drag silver higher with it.

Todd Horwitz
Chief Strategist
BubbaTrading.com

 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.